Blackstone is a financial institution that manages $550 billion in global assets. As recently as 1989, one of the partners of the Blackstone team, A, advocated a deal size of US$330 million to acquire Edcombe, a company specializing in steel processing. Another partner in the team, B, held an objection. After discussion between A and partner B, Schwarzman, the president of Blackstone, decided to make an acquisition.
But the acquisition did not have a happy ending in the end, with a loss of more than $330 million. Therefore, he was also scolded face-to-face by investors for "covering his face". "Sitting in a client's office, I felt my tears well up and my cheeks country email list turned red." (from - My Experiences & Lessons)
Figure 5: "Single-person decision-making" system
Reasonable partner A should be responsible for the transaction proposed by partner A. Generally, the common operation will be: criticize partner A for a meal, and then ask partner A to go to the father's office to be scolded, and finally return to daily life. Getting rid of individuals is a very simple matter, but the same type of mistakes are bound to happen again in the future.
Schwarzman did not think about the problem in the usual way, because he knew that the most critical crux of this failure was not the individual, but the serious systemic problems in the overall decision-making system. The "single decision-making" system is transformed into a "team decision-making" system to effectively decompose risks.
Figure 6: The "team decision" system
We do not let everyone learn his decision-making process here, and his decision-making process is not necessarily suitable for his own team. More is to analyze and refine his core logic, that is, to think about the problem from top to bottom, find the key crux of the overall process and optimize it.
The same is true in the previous article "Community uses systematic SOP management". If it is mechanically implemented, it may not be suitable. You need to make continuous adjustments based on your mastery for your real business scenarios. of value. This is why many people feel that they have read a lot of theoretical knowledge, and it is often applied in their work, but there is still no obvious improvement in their work help. In fact, it’s not that people are lacking in ability. You might as well think from the top down, reposition the problem, and break through the vicious circle of the death spiral.
Figure 7: Death spiral and broken circle
02 Drucker: first think about the organization and then position the people
Since we are talking about systems, we cannot get around the organization, and finally we get to people. We must first realize the strengths of people, and secondly, the shortcomings can be compensated.
Peter Drucker, known as a management guru, once said in the book that the purpose of an organization is "to make ordinary people do extraordinary things". No organization can rely solely on genius, which is always rare and unpredictable. But whether ordinary people can show extraordinary performance, stimulate everyone's potential advantages, and use these advantages to help other members of the organization perform better, in other words, whether to learn from each other's strengths and weaknesses, is a major test of the organization.
A good organizational spirit must allow the individual's strengths to be fully developed, affirm and reward outstanding performance, and allow the individual's outstanding performance to make constructive contributions to other members of the organization. Therefore, a good organizational spirit should emphasize the individual's strengths - what he can do, not what he can't do, and must continuous